Auditors Role in Cybersecurity

U.S. organizations who were victims of a data breach in 2018 lost an average of $7.91 million due to the breach. The cost of these breaches is the highest of all regions and countries covered in the IBM and independent research firm the Ponemon Institute’s 2018 Cost of a Data Breach Study.

New Hedging Disclosures

Final Securities and Exchange Commission (SEC) guidance will soon require public companies to disclose whether their officers, employees, and directors are allowed to offset a decrease in the market value of the company’s stock. Here is what you need to know on providing up to date disclosures on your company’s hedging policies.

Reporting Nonemployee Stock Compensation

Accounting rules for the reporting of stock compensation have recently been expanded under guidance by the Financial Accounting Standards Board (FASB). The updates now include share-based payments to non-employees for providing goods and services.

Preparing for a Merger Audit

Merging with another company is a process that should begin with audited financial statements reflecting the results and financial position of the combined entity. Preparing these statements requires close communication between in-house accounting personnel and an external audit team for both companies. Connection between entities and auditors is key to a smooth transition.

Managing Cybersecurity Risks

Reading time: 1 minute 30 seconds Disclosing cyber-risks and recent hacks is becoming a prominent request from investors, lenders, and other stakeholders. Stakeholders want more information than most companies are providing. The Securities and Exchange Commission (SEC) is working to … Continued

Internal Control Assessment Requirements

A key factor in the detection and prevention of fraud is strong internal controls. Section 404(1) of the Sarbanes-Oxley Act (SOX) requires that public company’s management annually assesses the efficacy of internal controls over financial reporting. Section 404(b) of SOX requires independent auditors provide an attestation report on the assessment of internal controls by the company’s management (though some smaller companies are exempt).

Policy Changes for the Use of Estimates and Specialists

Many high profile accounting scams and financial restatements have been attributed to complex accounting estimates such as impairments of long-lived assets, valuations of financial and nonfinancial assets, and allowances for doubtful accounts. This is partially because estimates almost always involve some level of measurement uncertainty; this uncertainty can even call for the use of outside specialists such as engineers or appraisers.

Evaluating Your Insurance Company Auditor

An audit is often viewed as a compliance exercise that doesn’t offer much value to management other than satisfying a reporting requirement. A proper audit process is often described as one that was completed on time and with few surprises. A bad audit process breeds the mentality that the audit is to be tolerated, endured and celebrated when finally finished.

Tax Reform Impact on SSAP 101

The tax law was signed on December 22, 2017. Many of the amendments are to take effect in 2018, but there are sections that take effect on the date the bill was signed. On January 10, 2018, the Statutory Accounting Principles (E) Working Group voted to approve the following non-substantive revisions to SSAP No. 101-Income Tax.